In 2019, over 56% of Americans who bought Christmas gifts made a set budget. However, only 64% stuck to their holiday spending, according to The Ascent. Gift-giving is one of the most exciting and fulfilling moments during the holidays, but it can ruin your budget if you don’t plan it right. Without proper planning and budgeting, you’ll feel the pressure to spend more than you can afford on presents. As a result, you might end up landing in debt.
Establishing a holiday budget will not only help you avoid overspending, but you will also learn how to save money when shopping online and in stores. Here are gift budgeting and planning tips that will make the busy gifting season less stressful.
Prepare a List of Gift Ideas
Knowing who you’re buying gifts for and what to give them makes gift shopping easy. So, create a list of people you will give presents to and stick to it. Next, come up with gift ideas for everyone on your list. For example, if you’re looking to buy gifts for three-year-old girls and boys, compile a list of toys that suit them.
If you’re unsure about their current interests, take advantage of the internet to gather gift ideas for toddlers and choose items that are educational and will enhance their growth. If you’ll be buying gifts for adults, map out ideas based on their interests, what they do for fun, or even ask for their wish list.
Set a Realistic Budget
Once you’ve listed down your gift recipients, establish a budget. When setting a holiday gift-giving budget, it’s reasonable to determine an amount per person. First, assess your financial status and then decide how much you can afford on holiday presents. Then divide the gift budget between individuals on your list. For example, if you’re willing to spend $100 and want to buy presents for five people, you’ll budget $20 for each person.
Research Money Saving Opportunities
Researching opportunities to save money is an essential part of gift planning. Therefore, take time to research online or check popular price comparison apps to identify when and where you can land great deals on holiday gifts. Most online retail stores provide great sales on Cyber Monday and Black Friday. Shopping during these promo days are ideal for buying those must-have expensive presents on your kids’, spouse’s, and friends’ wish list at lower prices.
Planning and budgeting ahead on what you’ll be gifting to your loved ones can save you money and time. This is because you can track prices and make a purchase whenever there is a sale in gift shops. So, create a list of gift recipients, establish a budget, and track prices using price comparison apps to get the best deals.